How are a wheat farmer and a firm similar in a perfectly competitive market?

Question

Quizplus · Accepted Answer

Both a wheat farmer and a firm in a perfectly competitive market face horizontal demand curves. This means that they are price-takers and must accept the market price for their product. If they attempt to charge a higher price, they will not be able to sell their product. Additionally, if a rival firm lowers its price, both the wheat farmer and the firm will have to lower their prices to remain competitive. However, the idea of vertical demand curves and earning an economic profit if total revenue equals total cost applies to monopolies, not perfectly competitive markets.

How Are a Wheat Farmer and a Firm Similar in a Perfectly